Report: General Dynamics May Partner with EADS on $1B DHS Bid

General Dynamics (NYSE: GD) may form a team with European aerospace and defense contractor EADS to bid on a potential $1 billion contract to help secure the U.S. border with Mexico, according to Reuters report.

The report says current negotiations between the companies indicate General Dynamics would be the prime contractor and EADS would perform a significant amount of work.

The Department of Homeland Security is also expecting bids from Lockheed Martin Corp. (NYSE: LMT), Boeing (NYSE: BA), Raytheon Co. (NYSE: RTN) and Northrop Grumman Corp. (NYSE: NOC).

DHS expects to issue a request for proposals March 26 and said the new system will integrate commercial off-the-shelf radars, cameras and sensors.

Toulouse, France-based EADS has won contracts from both the U.S. Army and Coast Guard and plans to expand its share in the U.S. market, according to Reuters.

It reportedly partnered with Northrop to bid for a U.S. Air Force 179-tanker plane order in 2008. The company later decided to make a solo bid, which lost out to eventual contract winner Boeing.

General Dynamics operates similar communications and control systems for the Coast Guard.

Two years ago, EADS won a contract to secure Saudi Arabia’s 9, 000-kilometer border to include mountains, deserts and sea.

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